When a business doesn't have quite enough employees, it is understaffed. Be patient with your server if the restaurant is understaffed — they're probably doing the work of several people!
Your lemonade stand is understaffed if there aren't enough workers to squeeze lemons, fill cups, and give customers change. And a school is understaffed if teachers are out sick and no substitutes are available to fill in. The word comes from the verb staff, "to provide with a staff of assistants," and the earlier noun, which meant "group of military officers" prior to "group of workers."